Suppose one year U S and German Treasury bills return 7 7 percent and 6 9 percent respectively If the exchange rate today is 0 95 E USD, what exchange rate expected to exist one year from today would cause investors to be indifferent between the two securities ...

Suppose one-year U.S. and German Treasury bills return 7.7 percent and 6.9 percent respectively. If the exchange

Question:

Suppose one-year U.S. and German Treasury bills return 7.7 percent and 6.9 percent respectively. If the today is 0.95 E/USD, what expected to exist one year from today would cause investors to be indifferent between the two securities?
Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...